SOA Exam P Sample Question 609
Study guide: Exam P-1
Losses under a theft insurance policy have cumulative distribution function
F(x) = \begin{cases}
0, & \text{for } x < 0 \\
c(x^2 + x), & \text{for } 0 \le x \le 5 \\
1, & \text{for } x > 5,
\end{cases}where c is a constant.
The policy has a deductible of 3.2 for each loss.
Calculate the probability that the insurer will pay something to the policyholder on a given loss.
- A)
0.296 - B)
0.360 - C)
0.448 - D)
0.552 - E)
0.704
Answer this question and see the worked solution